A PROJECT REPORT ON

FINANCIAL RATIO ANALYSIS

AT

Siemens India Limited (Gas & Power Division, Vadodara)

A report submitted in partial fulfillment of the requirement of

Master of Business Administration

Prepared By

PANCHAL PALAK MANOJBHAI

Roll number 42 (Batch: 2018-20)

Under the Guidance of

Mr. AMOL PREMCHAND

(Manager of Business Administration, Siemens Vadodara)

Faculty of Management Studies (FMS- Baroda)

M.S. Patel Institute of Management Studies

The Maharaja Sayajirao University of Baroda

 DECLARATION

I, PANCHAL PALAK MANOJBHAI, student of Faculty of Management Studies, M.S.University of

Baroda, hereby declare that this report is prepared on the basis of original work done by me
under the guidance of Mr. Amol premchand (Manager of Business Administration) at Siemens
India Limited (Gas and Power Division) Maneja, Vadodara.

I ensure the authentication of the material and guarantee that the data/ information
considered herein will only be taken for academic purpose and will not be in any manner be
used for commercial or any other purpose. Views mentioned in this report are my own and are
based on my observations, and they may or may not be accepted by the company.

PANCHAL PALAKMANOJBHAI

MBA- Operation Management (Batch 2018-20)

Faculty of Management Studies

The Maharaja Sayajirao University of Baroda

 CERTIFICATE OF EXTERNAL GUIDE

This is to certify that PANCHAL PALAK MANOJBHAI, student of Faculty of Management Studies,
The Maharaja Sayajirao University of Baroda, has undertaken a project titled “FINANCIAL
RATIO ANALYSIS” under my guidance for partial fulfillment for his degree in Master in Business
Administration.

Mr. Amol Premchand

Manager of Business Administration

Siemens India Limited (Gas and Power Division)

 ACKNOWLEDGEMENT

I take this opportunity to express our sincere gratitude to all those who have
helped making our internship at Siemens India limited, Vadodara, Gujarat a
memorable learning experience.

First and foremost I would like to thank my company guide Mr. Amol Premchand,
Manager Business Administration, Siemens Ltd., for sparing valuable time to
constantly monitor and guide my progress. He has been a constant source of
inspiration throughout the intern-ship.

This project would not have been possible if I didn’t have the support of my co-
company mentors Mr. Kedar Surve, Mr Rakesh Kumar, Mr Mehul Trivedi, Mr
Kaushlesh Pratap, who were constantly with me, providing me with leaning
opportunities and helping me unconditionally throughout the internship tenure. I
am thankful to them from the bottom of my heart.

I am also grateful to my college faculties, Prof. Dr. Jayrajsingh Jadeja and Ms.
Smita Trivedi for their immense support. I would also like to offer our thanks to
Mr. Purav Bhatt for providing us this valuable opportunity to learn at one of the
elite organizations in the best possible environment.

Moreover, I would like to thank the employees at Siemens India Limited,

Vadodara, for their constant guidance and help to learn the various aspects of the
corporate world.

Palak Panchal

Faculty of Management Studies

MSU Baroda
 EXECUTIVE SUMMARY

I, Palak Panchal successfully completed our summer internship at Siemens Ltd., Maneja,
Vadodara, Gujarat a subsidiary of Siemens India Ltd., one of the leading inventor, innovator and
implementer of leading-edge technology enabled solutions operating in the core business
segments of Industry, Energy and Healthcare.

Siemens’ heritage in India dates right back to 1867 when it began laying the world’s first
undersea cable from London to Kolkata.

Siemens set up a branch in India as early as 1922, in Mumbai and Kolkata. Though the
company’s assets were confiscated during World War II as enemy property forcing it to shut
operations. Siemens re-entered India after the war. It started operations as the “Siemens
Division” of “Protos Engineering”, a local contracting company. Siemens was engaged in sales
and service of our brand of switchgear and switchboards. Its first workshop was located under
the bridge of, what is today, the Mahalaxmi Railway Station of Mumbai.

In 1957, Siemens was incorporated as a company under the Indian Companies Act as Siemens
Engineering & Manufacturing Co. of India Pvt. Ltd. In 1961, Siemens became a public limited
company with restricted external shareholding and was listed in the Bombay Stock Exchange a
decade later.

For over six decades, Siemens India has been the preferred technology solutions provider,
conceptualizing and implementing various flagship projects in Mobility, Energy Management,
Power and Gas, Smart Cities, Intelligent Infrastructure, Industrial Applications, Healthcare and
Smart Financing. Siemens India is also strengthening its digitalization portfolio and working on
select applications in the country.

Siemens India develops skills with Corporate Citizenship initiatives like ITI upgradation, faculty
development, Technical Skills Development Centre and Scholarship Programs for meritorious
Engineering students. The company has signed Memorandums of Understanding with the
Government of Gujarat and Steel Authority of India, and works with industry bodies, such as
Automation Industry Association, Indian Machine Tool Manufacturers Association and CII, to
impact technical education. Siemens also has initiatives for sustainable and integrated
community development in rural areas.
 CONTENTS

1. Introduction..............................................................................................................................1

1.1 Financial analysis…………..……………………………………………………………………………………………….1

1.2 Siemens Group……………………………………………………………………………………………………………….1

1.2.1 Introduction…………………………………………………………………………………………………………..1

1.3 Siemens Corporate structure.…………………………………………………………………………………………2

2. Object and Methodology……………………………..………...................................................................4

2.1 Objective………………….…………………………………………………………………………………………………….4

2.2 Methodology………………………………………………………………………………………………………………....4

2.2.1 Horizontal and Vertical Analysis of Financial Statements……….…………………………………5

2.2.2 Revenue and Revenue Growth…………………………………………………………………………………5

2.2.3 Profitability……………………………………………………………………………………………………………….6

2.2.4 Capital Efficiency………………………………………………………………………………………………………7

2.2.5 Liquidity……………………………………………………………………………………………………………………8

2.2.6 Capital Structure……………………………………………………………………………………………………...9

2.2.7 Equity of Siemens……………………………………………………………………………………………………11

2.2.8 Weighted Average Cost of Capital…………………………………………………………………………..15

2.2.9 Comparison with Competitors………………………………………………………………………………..16

2.2.10 Financial Forecasting of Siemens…………………………………………………………………………….16

3. Financial Analysis of Siemens Group ……………………………………….………………………………………..20

3.1 Introduction ……..………………………………………………………………………………………………………...18

3.2 Analysis Period and data …..………………………………………………………………………………………..18

3.3 Horizontal and Vertical Analysis Balance sheet………………………….………………………………...19

 3.4 Horizontal and Vertical analysis of income statement .………..………………………………………23

3.5 Revenue and revenue Growth…………………………………………………………………………………….25

3.6 Profitability………………………………………………………………………………………………………………...25

3.7 Capital Efficiency………………………………………………………………………………………………………....27

3.8 Liquidity…………………………………………………………………………………………………………………….…29

3.9 Capital Structure ………………………………………………………………………………………………………….31

4. Equity Of Siemens…………………………………………………………..………………………………………………….35

4.1 Siemens Share ………………………………………………………………………………………………………….…35

4.2 Comparison with Competitors………………………………………………………………………………………35

5. Conclusion……………………………………………………………………………………………………………………….…44